Effect of Capital Adequacy Ratio and Activity Ratio on Non-Performing Loan with Company Size as Moderating Variable

The study analyzes the impact of the capital adequacy ratio (CAR) and business activity indicators on the level of non-performing loans (NPL) in Indonesian food industry companies (2019-2022). A quantitative method and path analysis in SmartPLS 4 were used. CAR and activity do not have a significant impact on NPL. Instead, the size of the company has a direct and positive impact on the level of non-performing debt. It was found that the size of the enterprise does not act as a moderator for CAR and activity indicators (P-Value > 0.05). For food industry management, the key factor in credit risk is the size of the company, while capitalization and activity were found to be secondary during this period.